Loaded labor rate formulas allow for tracking an employees true pay rate, but still managing job cost reporting with a true loaded rate. These formulas can be attached to each labor resource rate, and are designed to be flexible to just about any situation.
Loaded labor rate formulas can be added directly on their own page here. They will then need to be attached to a labor resource rate:
The formula engine is very flexible and powerful, if these two examples do not cover your situation please contact us at email@example.com and we would be happy to assist you with your formulas!
Formula #1 - A simple multiplier
For our first example we will create a formula that applies a simple multiplier. Let's say that after examining your numbers you have determined that you need to "load" your labor by 50% to account for other direct expenses such as payroll taxes, health insurance, workers comp, etc in order to have accurate job costing. The first step would be creating a new formula:
While building your formula we have provided a list of all available variables that can be used. The list in your system may be longer than in this example because your operation, client, and job custom inputs are all available as inputs to the formula. For this example all we need to do is take the labor resource rate and apply a 50% markup. Our final formula is labor_resource_rate * 1.5.
Once the formula is created it can be attached to any labor resource rate by following the steps in the first video in this post. Once that is done the labor costs for that labor resource will be boosted by 50% in all of your job costing reports.
Formula #2 - Using Custom Inputs
Let's make things a little bit more interesting. Let's say in your business after examining your numbers you have determined that your load factor for your Tree operation is 50%, Maintenance is 35%, and PHC is 75%. To facilitate that you can add a custom input to your operation, and then bring that custom input into your formula. This way instead of hard-coding a 50% increase, your labor costs will be updated dynamically based on the operation of the job your team logs time against.
To create this formula you can utilize operation custom inputs like this:
To make this easy all available variables are provided in the list, and you can click on any of them to have them added to the formula automatically. Now the formula can be associated with any labor rate, and as long as those values are filled in on the operation you're good to go!